Is your cryptocurrency sure? Bind.
Coinbase, one of the best Crypto exchanges, was hacked on May 11, just a few days before its public debut on the S&P 500. Cybercriminals welded foreign support agents for sensitive personal information from users, affecting around one million Coinbase investors.
Pirates did not violate private keys, passwords, funds or Coinbase prime accounts. However, personal information such as names, addresses, government identifiers and the last four figures for social security numbers have been compromised.
Although crypto trading platforms and Coinbase are responsible for protecting investors against fraudulent activities and hacks, you can take safety in your hands to further protect your investments.
Here are the best practices that cryptos traders can take to protect themselves and their cryptocurrency after the hacking of Coinbase.
Never share your private keys
First rule of trading of cryptocurrencies: never share your private keys.
Private keys are a unique and random character string that gives access to your cryptographic participations. You should be the only owner of your private keys to prevent the sale or unauthorized transfer of your cryptocurrency. Without your private keys, you can lose access to your cryptographic participation.
Use cold storage
One of the best ways to protect your crypto from hacks and potential crooks is to use off -line cold storage instead of a virtual hot wallet. Although hot wallets can safely hold your cryptographic assets and your private keys, they are connected to the Internet and therefore sensitive to pirates.
Instead, use a cold wallet, otherwise called a hardware wallet, which is a physical device not connected to the Internet. Ledger and Trezor are two of the most popular cold portfolios appearing on our list of the best Bitcoin wallets.
A cold wallet generally requires its own key to access. If you lose this key, you may constantly lose access to crypto in your wallet.
Beware of cryptographic scams
The decentralized nature of cryptocurrency, the lack of regulations and irreversible transactions make it a target for crooks. Due to the complexity of trading on the blockchain, inexperienced crypto traders are more easily deceived.
Phishing scams are a common threat to the world of cryptography. The crooks are trying to identify exchange employees or another source of confidence by phone, e-mail or text to encourage you to reveal sensitive information such as your private keys or passwords. If you suspect a potential phishing scam, contact your exchange to check the request.
Also beware of potential carpet prints or pump-and-dump patterns. In these regimes, the crooks aggressively promote a new piece to attract investors, inflating its value only to abandon the project. At the end, investors end up with worthless tokens.
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Invest only in what you understand
Technically, anyone can create a cryptocurrency, but most do not manage to become the next bitcoin or ether. Some tokens generate an initial shock, only to fall in value just as quickly. For this reason, it is crucial to read the white paper of a crypto before buying. White pods have the objective, technology and the roadmap behind the medal.
Also do your homework on the platform or the exchange of crypto, because not all exchanges are created equal. Some crooks even create false websites or applications imitating popular exchanges to steal private keys.
Before opening an account with a random exchange, carefully pass the history of the platform, customer opinions and the various security measures that it has in place to protect your information.
Monitor your account and report a suspicious activity
Make sure to regularly monitor your account activity to make sure that all transactions are you and no one else. If there is an unauthorized activity on your account, you must:
- Log your account on all devices
- Reset your password
- Contact the platform or exchange
Configure the transaction notifications to be alerted to a suspicious activity in your account. In these circumstances, it is preferable to act as quickly as possible.
Use additional security measures
Cryptographic transactions are irreversible, it is therefore very important to make an additional effort to protect your account with additional security measures such as:
- Two -factor authentication: 2FA provides an additional safety layer when you connect, requiring two forms of identification.
- Strong password: Avoid using our name or reuse the same password on different accounts. Solid passwords are long, generally 12 to 14 characters and include numbers, symbols and higher and tiny letters.
- Keep the software up to date: Make sure to update your trading software and Crypto portfolio regularly to access the latest security updates and software fixes.
